This is a 20-fold increase compared to Buffett’s purchase price of HK$8 in 2008!
Editor’s note: This article is from “Wall Street knowledge “ , author: a Ze .
Holdings have never been reduced in twelve years. This is another fruitful result of the “Stock God” long-term value investment.
The legend of Warren Buffett continues. His only long-term holding and heavy holding of Chinese stocks has doubled 20 times in 12 years!
In September 2008, Buffett purchased 225 million shares of BYD at a price of 8 Hong Kong dollars per share. The total transaction amount was 1.8 billion Hong Kong dollars, accounting for 9.89% of the enlarged share capital.
In this round of cars and new energy vehicles, BYD has gone crazy. As of the close of today’s noon, BYD’s A shares and H shares have risen by 17.46% and 18.84%, respectively. The share prices have broken through historical highs, reaching 162.88 yuan and 161.5 Hong Kong dollars. This is more than Buffett’s purchase price of 8 Hong Kong dollars in 2008. 20 times!
Stock price increase
Another success of the long-term value investment concept
In October 2016, BYD set up a joint venture company in Qinghai Salt Lake and started the development, production and sales of upstream lithium resources. In the same period, the company launched the “straddle monorail system” (cloud rail), once again entering the new urban rail transit field.
At present, BYD is still the only enterprise group in the world that spans the two major areas of vehicles and batteries. It has the world’s leading core technologies such as batteries, motors, and electronic control. The company’s power battery technology route has also changed from the initial threshold From the lithium iron phosphate battery to the current ternary lithium battery.
According to a report released by Bank of America Securities today, the target stock price of BYD shares was raised from 108 Hong Kong dollars to 179 Hong Kong dollars.
The report pointed out that it raised its third-quarter profit guidance by 600 million yuan to 1.7-1.9 billion yuan earlier, mainly due to the rebound in electric vehicle sales due to the launch of new models, and the sales of Biyao Electronics’ smartphone parts. Due to the increase in volume.
Based on the company’s increased use of LFP blade batteries to reduce cost of goods sold and improve gross profit margin, the bank raised its earnings per share forecasts for 2020 to 2022 by 1%, 45% and 45%, respectively. In addition, the bank raised BYD’s forecasts for sales of electric vehicle batteries to external customers; and raised its passenger electric vehicle sales forecasts for 2021 and 2022 by 5% and 19%, respectively.